Nepal Advances Biometric Passport Plans Post-Legal Challenge

Published Date : 7/28/2025 

Nepal's Department of Passports (DOP) is set to sign contracts with Mühlbauer and Veridos for the supply and management of a new biometric passport system, following the rejection of Idemia's legal challenge. 

The Nepalese government has invited Mühlbauer and Veridos to sign their contracts with the Department of Passports (DOP) following clearance from the country’s Supreme Court for the deal to go ahead, as reported by The Himalayan Times.

The contracts, which involve the supply and management of a new biometric passport system, were awarded to the two German firms early last month. However, the process was challenged by Idemia Smart Identity over alleged irregularities.

Both German companies had their bids chosen over that of Idemia Smart Identity, which held the passport contract until then. According to the contract terms, Veridos is expected to supply 6.4 million biometric passports, while Mühlbauer is supplying the eMRTD (electronic Machine-Readable Travel Document) system to support the issuance, management, and verification of passports and other secure travel documents.

Idemia raised several concerns about the tender process, citing what it called “critical administrative and technical non-compliance” issues. The company also claimed that the evaluation committee members faced undue pressure, which may have led to the altering of the final results. Additionally, Idemia pointed out missing files in the winning bids and issues around currency exchange discrepancies.

In response, Idemia filed a complaint with the DOP, asking for redress. When the department’s response was not deemed favorable, Idemia, which was recently acquired by IN Groupe, seized Nepal’s Public Procurement Review Committee (PPRC) on the matter. A parallel public interest litigation was also filed with the Supreme Court.

The PPRC rejected Idemia’s challenge, stating that the complaint had no merit and that the $560,000 bid security it paid should be forfeited and channeled into the country’s Inland Revenue Office.

The decisions from the PPRC and the Supreme Court mean that the German companies will proceed with the signing of their contracts within a period of two weeks, scheduled for early August. The new passport production is expected to begin from February next year.

This marks the end of a process that puts an end to Idemia’s contract with the Nepalese government, which has been in place since 2010. The government claims that the new contract will save it around $12 million compared to Idemia’s previous pricing. 

Frequently Asked Questions (FAQS): 

Q: What are the main companies involved in Nepal's new biometric passport system?

A: The main companies involved in Nepal's new biometric passport system are Mühlbauer and Veridos.

Q: Why did Idemia challenge the contract award?

A: Idemia challenged the contract award citing ‘critical administrative and technical non-compliance’ issues, undue pressure on the evaluation committee, missing files in the winning bids, and currency exchange discrepancies.

Q: What is the expected savings for Nepal with the new contract?

A: The new contract is expected to save Nepal around $12 million compared to Idemia’s previous pricing.

Q: When is the new passport production expected to begin?

A: The new passport production is expected to begin from February next year.

Q: What was the outcome of Idemia's legal challenge?

A: The Public Procurement Review Committee (PPRC) and the Supreme Court rejected Idemia’s challenge, stating that the complaint had no merit. 

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